Posted!

Join the Conversation

Comments

Welcome to our new and improved comments, which are for subscribers only.
This is a test to see whether we can improve the experience for you.
You do not need a Facebook profile to participate.

You will need to register before adding a comment.
Typed comments will be lost if you are not logged in.

Please be polite.
It's OK to disagree with someone's ideas, but personal attacks, insults, threats, hate speech, advocating violence and other violations can result in a ban.
If you see comments in violation of our community guidelines, please report them.

Winnebago, Bridgestone employees begin returning to work beginning next week

After sending their employees home out of concern about the spread of COVID-19, two major Iowa manufacturers will begin reopening their factories next week.

Winnebago Industries and Bridgestone made the announcement Wednesday, even as Iowa Gov. Kim Reynolds announced 97 new confirmed cases, bringing the state's total to 1,145.

In news releases Wednesday, Winnebago and Bridgestone both said they would follow guidance from the U.S. Centers for Disease Control and Prevention as they resume operations.

“The coronavirus pandemic continues to create a very challenging economic environment for the industries in which we compete," Winnebago President and CEO Michael Happe said in a statement. "Our top priorities during these uncertain times remain the health of our employees and the financial stability of our company."

Winnebago halted production of its recreational vehicles and boats March 23, citing the spread of the coronavirus. In its Wednesday news release, it said employees will resume production Monday of the company's Chris-Craft powerboats in Sarasota, Florida, and some specialty vehicles in Forest City.

It also said production of Winnebago motorhomes at its Lake Mills, Forest City, Waverly and Charles City plants will resume the week of May 4. The company employs about 2,000 workers in the state, most of them on production lines.

Buy Photo

The Winnebago factory in Lake Mills where the new Revel RV is made alongside other Class B RV's on Wednesday, Dec. 5, 2018, in Lake Mills. The Revel, with its 4x4 and rugged nature has sparked the interest of outdoor enthusiasts and has helped the motor home manufacture rebound from poor sales during the recession.(Photo: Brian Powers/The Register)

"We are confident the outdoor recreation industry will rebound in the future, and as such, we will carefully activate our leading brands and sound strategies against available demand as it gradually recovers," Happe said.

Bridgestone said its Des Moines factory, the largest agricultural tire plant in the world, also will resume production Monday. Bridgestone employs 1,400 workers at the plant.

“We are mindful of the need for Bridgestone to do its part in providing critical products and services to businesses and agencies doing so much to keep essential workers and goods moving," Bridgestone Americas President and CEO Paolo Ferrari said in a statement.

The factory has been closed since March 22. Steve Vonk, president of U.S. Steelworkers Local 310, which represents workers at the plant, praised the company in an interview with the Des Moines Register at the time.

"We hope other facilities follow their lead and do what's right to contain this virus," said Vonk, who did not return a call seeking comment Wednesday.

When it shut down production last month, Winnebago said it would pay employees and make health insurance payments for two weeks. Beyond that, the company encouraged workers to file for unemployment benefits.

On Wednesday, Winnebago announced it would continue to make health and dental insurance contributions on behalf of out-of-work employees through the end of April.

"Management assured us that their models and simulations forecasted that the company could handle the debt load even in a downturn," Lou wrote in a letter to the board March 24. "We are about to find out if the models are correct, but this decision by management has gambled the company's future unnecessarily."

Lou demanded that Happe go without pay for as long as the company's employees do. He also asked the board to review executives' use of private jets and called for Winnebago to cease paying dividends to investors.

On Friday, Happe announced he will take a 25% pay cut for the rest of the fiscal year, which ends Aug. 31. The board also will take a 25% cut in cash compensation, while the executive leadership team will see cash compensation "materially reduced," the company said.

"We remain disciplined in our approach to financial management and confident that we are taking the right actions to emerge from this crisis even stronger than before,” Happe said in a statement.

Asked if Happe's announcement was a response to Lou's letter, company spokesman Sam Jefson said in an email: "This decision was part of the company’s overall cost-reduction strategy related to the COVID-19 crisis."

After halting production of its recreational vehicles, Winnebago has made medical masks at its Forest City and Sarasota factories. The company announced in a news release that it would donate about 6,000 masks to MercyOne North Iowa Medical Center in Mason City.